To get a jump on where the stock market may be headed, track the stock futures and premarket prices, particularly the index futures. Outside of normal market hours, the Dow futures, S&P futures and Nasdaq futures can help you build your Investing Action Plan for when the stock market opens.
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The prices of the futures for indexes and individual stocks are based on after-hours or premarket trading. The prices you see in the index futures market do not necessarily indicate where the index or stock will open in the next trading session.
Use the Dow futures, S&P futures and Nasdaq futures to get a feel for where the market may be headed, not for exact predictions of pricing.
Bookmark this page to stay on top of index futures. You'll also find information onindividual stocks moving in extended-hours trading.
Latest Stock Futures And Premarket News
What Are Stock Futures And Premarket Trading?
Index futures are derivatives of indexes such as the Dow Jones industrial average, S&P 500 and Nasdaq 100. Investing in these futures is essentially betting on the future value of the index. Like options, futures contracts always have an expiration date.
Institutional investors, particularly, use index futures to lock in a future buy or sell price. The trade is based on where they think the market is headed or to hedge their positions against different scenarios.
In addition to stock futures based on the Dow Jones industrial average, S&P 500 and Nasdaq 100, stock futures for the Russell 2000 are also widely used.
Fund managers and other large investors often use futures because they are leveraged. In other words, using a form of margin, investors can control shares in the index or stock without having to pay full price up front.
But understand that trading index futures is complicated since are highly leveraged investments. Investors who don't understand how to manage leverage and the related risk should refrain from trading futures. Be sure to first understand both the benefits and potential pitfalls before investing.
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FAQs
Nasdaq.com will report pre-market and after hours trades. Pre-Market trade data will be posted from 4:15 a.m. ET to 7:30 a.m. ET of the following day.
How much is 1 tick of ES worth? ›
The minimum tick is one-quarter of an index point, or $12.50 per contract. If /ES rises or falls, say 30 points (about 1%), that translates into a gain or loss of $1,500 (30 points/0.25 minimum tick = 120 ticks; 120 x $12.50 = $1,500).
How do I get premarket data? ›
The first place investors should look to find information about pre-market and after-hours activity is their brokerage account's data service, if they have one. Brokerage information services often provide the most detailed off-hours market trading data and usually come free with a brokerage account.
Where can I see real-time stock prices? ›
Real-time Data is provided using Nasdaq Last Sale Data
Register for your free account today at data.nasdaq.com.
How much is one Nasdaq futures contract? ›
E-Mini Nasdaq Index Futures Contract Specifications
The E-mini Nasdaq 100 index futures contracts are standardized exchange-traded contracts that represent the value of 100 of the largest stocks traded in the US. The value for a 1-point move in the standard contract is $20 or $2 for the 1/10 size micro contract.
How much is 1 point in the S&P futures? ›
S&P Futures trade with a multiplier, sized to correspond to $250 per point per contract. If the S&P Futures are trading at 2,000, a single futures contract would have a market value of $500,000. For every 1 point the S&P 500 Index fluctuates, the S&P Futures contract will increase or decrease $250.
Do Dow futures predict the market? ›
Futures look into the future to "lock in" a future price or try to predict where something will be in the future; hence the name. Since there are futures on the indexes (S&P 500, Dow 30, NASDAQ 100, Russell 2000) that trade virtually 24 hours a day, we can watch the index futures to get a feel for market direction.
What is the difference between NASDAQ and Nasdaq futures? ›
The Nasdaq 100 is widely considered to be a key benchmark of technology, telecom, and biotechnology issues. E-mini Nasdaq futures represent 20 times the Nasdaq 100 stock index and allows you to participate in Nasdaq market moves without having to select individual stocks.
Does premarket trading predict? ›
Extended-hours trading in stocks takes place on electronic markets known as ECNs before the financial markets open for the day, as well as after they close. This activity can help investors predict the open market direction.
Is Dow futures the same as Dow 30? ›
Dow Futures is a contract whose value is derived from the Dow 30. A futures contract is a contractual agreement to buy or sell a financial asset in the future at a predetermined price and time. Since the Dow Futures is based on the Dow 30, the contract is for the 30 stocks on the index.
Stock prices have surged significantly over the past 18 months. The S&P 500 is up by 45% since it bottomed out in October 2022, while the tech-heavy Nasdaq has soared by a whopping 58% in that time. Investing now, then, means paying much higher prices than you would if you'd bought a year or two ago.
How do you find stocks before they hit the market? ›
Simply search for stocks for which the current day's opening price is greater or less than the previous day's closing price. You can further refine your search by adding filters for the magnitude of the price gap. Filtering for stocks with a gap of at least 1% is a good way to start scanning for pre-market gappers.
How do I view premarket data on TradingView? ›
Within the chart settings panel, look for the section related to trading sessions or time settings. The exact terminology may vary depending on the TradingView version you are using. Look for an option that allows you to enable or disable “Extended Trading Hours” or “Pre-Market” and “After-Hours” data.
Where can I look up historical stock prices? ›
Online brokerage sites such as eTrade and TD Ameritrade or apps like Robinhood will have both real-time and historical quote data for customers and usually limited access for non-customers as well. Financial websites like Motley Fool or Google Finance will also provide quote information for both stocks and indices.
Which broker has pre-market trading? ›
Best brokers for after-hours trading and pre-market trading
Fidelity Investments: Fidelity offers extended hours from 7 am to 9:30 am and from 4 pm to 8 pm. Merrill Edge: Merrill Edge offers extended hours from 7 am to 9:30 am and from 4 pm to 8 pm.
